Fresh data suggests the UK housing market could be poised for a shift, with property professionals reporting a significant uptick in confidence regarding future sales and prices.
Surveyors Report a Shift in Sentiment
According to the latest monthly survey from the Royal Institution of Chartered Surveyors (Rics), expectations among property professionals have turned more positive. The key driver behind this change in mood is attributed to easing interest rate expectations and the clearing of budget-related uncertainty that had previously clouded the market.
The survey for December 2025 found that a net balance of 22% of professionals now expect sales to increase rather than decrease over the next three months. This marks the strongest near-term sales expectation recorded since October 2024.
Longer-Term Optimism Builds
Looking further ahead, optimism grows even stronger. A net balance of 34% of surveyors anticipate an increase in sales volumes over the coming twelve months. While house prices are expected to remain broadly flat in the immediate quarter, the one-year price outlook has brightened considerably.
A balance of 35% of professionals now forecast price growth over the next year, representing the most upbeat assessment since late 2024. This indicates a belief that current downward momentum is moderating and a recovery in values is on the horizon.
Market Remains Soft but Downturn Losing Steam
Rics was careful to note that the market finished 2025 in a "prolonged soft patch". In December, a net balance of 24% of professionals still reported a fall in new buyer inquiries, and 19% saw a decline in agreed sales. House prices also continued to edge down, with a net 14% reporting falls.
However, both the sales and inquiries measures showed a slight improvement on November's figures, leading Rics to conclude that the downturn is losing momentum. Tarrant Parsons, Head of Market Research and Analysis at Rics, described seeing "tentative signs of a shift in sentiment beneath the surface."
He identified the key test for 2026: "whether borrowing costs ease on a sustained basis." If they do, he believes it could provide the catalyst for a recovery in buyer demand.
The report also highlighted a stark regional divide. In December, London and the South East were experiencing particularly sharp price falls. In contrast, Scotland and Northern Ireland continued to record house price growth.
Experts commenting on the data echoed the cautious optimism. Tom Bill, Head of UK Residential Research at Knight Frank, noted that clarity around taxation and the prospect of further rate cuts had led to stronger-than-normal demand in early January 2026. He forecasts UK prices to grow by 3% over the course of the year.
David Fell, Lead Analyst at Hamptons, warned that the North-South divide looks set to persist, with the Midlands and North likely to keep the lion's share of price growth. Southern markets, he suggested, will bear the brunt of the impending mansion tax, causing prices to adjust.
The lettings market remains under significant pressure due to persistent supply constraints. Rics expects rents to keep rising, with average rental growth forecast at around 3% over the next twelve months.
